With government bond yields at record lows and a pessimistic outlook for equities, investors have been urged to consider high yield bonds and high dividend equities .
Dan Morris, market strategist at J.P. Morgan Asset Management, has in his latest outlook highlighted how government bond yields have reached levels not seen since the depths of the financial crisis at the end of 2008.
With such low values in the UK, investors purchasing bonds at this point are much more likely to see negative price returns than positive ones in the near future, Mr Morris observed.
"We would suggest high yield bonds and high dividend equities, along with convertible bonds to provide an opportunity to participate in any equity rally that occurs while protecting against the risk of another market correction," he remarked.
Meanwhile, the credit ratings agency Moody's claimed recently that investors in loss-making money market funds are less likely to be bailed out by fund sponsors in the future.
Investors urged to consider high yield debt and high dividend equities
Investors urged to consider high yield debt and high dividend equities
Tue, 07 Sep 2010
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